Answer:
WACC without debt is higher by = 1.7%
Explanation:
<em>The weighted Average cost of Capital (WACC) is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion each source of finance bears to the total capital in the pool..</em>
To determine the amount by which WACC would be higher, is the difference between WACC with and without debt.
WACC using debt
<em>Step 1</em>
Cost of debt = Before tax cost of debt × (1-T)
= 7%× (1-0.21) = 5.5%
Step 2
<em>Market value of debt and equity</em>
Market of debt = 200 million
Market value of equity = $55 × 10 = $550 million
Total market value = 550 + 200 = $750 million
Step 3
WACC with debt = ((5.5%× 200) + (12%.× 550))/ 750
= 10.3%
WACC without debt (i.e only equity)
WACC without debt = cost of equity = 12%
Difference in WACC between with and without debt
= 12%- 10.3%
= 1.7%
The WACC without debt is higher by 1.7%
Answer: pioneer advertising
competitive advertising
Explanation: Pioneering ads relate to a new product category launch strategy as contrasted to selling a single item within an established market. Pioneering advertising is aimed at reminding customers of the introduction of a totally new product and describing its advantages.
Competitive advertising is a desire on the part of at least one organization to differentiate its product with rivals selling similar or slightly similar product. The company expects to gain a greater market share by creating a distinction for the customer and attempting to influence the purchasing decision of the customer.
Thus, from the above we can conclude that focuses on the fresh concept of drinking juice at dinner depicts pioneer advertising and the great taste showing better quality than competitors element depicts competitive advertising.
Answer:
Jane's Social security = $535.71
Josh's Social security = $964.29
Explanation:
Jane's Social security = $500
Josh's Social security = $500 x 180%
Josh's Social security = $900
Suppose In order to have $1,500 per month retirement income
Jane's Social security = X
Josh's Social security = X x 180% = 1.8X
Total Income = X + 1.8X
$1,500 = X + 1.8X
$1,500 = 2.8X
$1,500 / 2.8 = X
X = 535.71
So
Jane's Social security = X = $535.71
Josh's Social security = 1.8 x 535.71 = $964.29
Explanation:
The fastest typist ever recorded is Stella Pajunas-Garnand.
She typed 216 words in a minute.
